Facts About CBD Merchant Accounts
Have you recently tried to do a Google search on how to secure a CBD hemp or merchant account? If you have, you will probably have noticed that there is really not a lot of information that can help you. Even though CBD oil is 100% legal, most processors and banks still are not jumping on board with either the companies or the industry. Why is that?
One of the reasons may be that they are simply ignorant when it comes to how CBD is cultivated and processed. Therefore, these type of people need to be educated on exactly what CBD oil is and why is it so popular. In fact, online new marijuana and hemp oil stores are opening up by the dozens on a daily basis. CBD oil is now a key player in a growing, new global market.
But what exactly is CBD oil? Cannabidiol oil, CBD, comes from the cannabis plant. Studies have shown that it has the potential to treat certain illnesses such as inflammation, anxiety, various sicknesses, and seizures. The oil is extracted from the low THC strains of the cannabis plant. It is a non-psychoactive oil that can be stored as oil or in capsule form.
Currently, cannabis is a Schedule 1 drug in the U.S. and this makes it 100% illegal according to federal law. This illegality means that there are restrictions for CBD oil forms of payments when using a MasterCard or Visa. To secure a legal way for a CBD transaction payment it will be necessary to obtain an offshore or domestic CBD merchant account.
A CBD oil merchant account from http://thesoutherninstitute.com is vital to grow an online CBD oil sales website. Fortunately, there are now some states within the U. S. that are beginning to provide authorization for the production and selling of this amazing product. It therefore is obvious that many merchants, who offer hemp derived products, are anxious to see the opening of CBD Merchant Accounts become less difficult. This will make it easier for them to process CBD payments.
If a state bank would accept these type of payments then it would allow the merchant to continue to serve his global clientele with an appropriate payment processing system. A CBD Merchant Account is beneficial because it is able to provide 24/7 calculations of any currency difference. This alone will result in additional sales and better profits for the CBD merchants.
The consumer will also benefit by being able to easily purchase lotions, hemp supplies, and CBD infused oils. It will offer the customer a lot more flexibility which often means that they will become repeat customers. One of the advantages of having an online business is that it is open 24 hours a day, seven days a week, anywhere in the world.
An online certified CBD payment is a proven secure way to transfer money between the customer and the seller. An online payment, via a CBD Merchant Account, will allow this proven way of transferring money. It will also provide protection for any sensitive information on both sides.
As mentioned previously, CBD oil sales and supplies is a growing market and it can be extremely profitable. However, it is still quite difficult for the owner of a CBD website company to secure proper CBD oil payment processing. Though currently legal, there are not many merchant banks who are willing to process an application from a CBD dealer. If a bank does decide to accept your application then there will be conditions. There will be a longer waiting time for your account to be approved and you may have to pay higher fees and rates.
The majority of CBD oils and hemp supplies are being offered through e-commerce platforms. It is therefore vital to secure a correct payment gateway system. A bank usually considers a CBD merchant part of a high-risk industry. The reason is because they are not sure of the payment processing in light of the fact that it is linked to marijuana. However, they often do not realize that the hemp plant is made up of both THC and CBD. Marijuana contains the psychoactive THC component whereas CBD is 100% non-psychoactive.
Even if a bank does decide to accept the CBD Merchant Account application, they will add on some very strict requirements. For example, the merchant may need to produce proof that they can do at least $1500 in sales every week. The Merchant will also need to provide up to six months of their payment processing history complete with banking statements, charge-backs, total sales, and refunds. They also will need to show the company’s name on all documents and the merchant will need to endure a rolling reserve of 10%.
The good news is that there is a long-term solution for CBD Merchant Processing. There are companies online that will provide a CBD merchant with all of the premium high risk services that they require. They will utilize a unique variety of processing techniques that will ensure that all CBD merchant transactions are a simple and smooth process.
Some of the features that you can expect from your CBD Merchant account include chargeback alerts, secure payment gateway, chargeback disputes, multi-bank processing (including offshore), fraud protection and prevention, Check / ACH 21 processing, and a competitive processing rate that will be below 6%. These type of companies will work hand-in-hand with a CBD merchant to help protect the business from account closures, chargebacks, and fraud.
Many of these helpful companies have very strong relations with high risk merchants and banks both offshore and in the United States. They will be able to provide you with a solution for credit card processing that is 100% USA domestic. This will be extremely important for your business because credit card acknowledgment rates should be as close to 100% as possible. If they are, this will directly affect your company as you watch your sales increase.
Some of the features of having a domestic account include daily funding, recurring payments, a set-up time of between 5 to 7 business days, no processing history required, a 0% reserve for a well-qualified merchant, and flat fees that will range anywhere from 4.9 – 7.9%.